Pas Trusted News – Cheap car insurance and average costs for 16 year olds

Car insurance for teen drivers can be astonishingly high, which is why we’ve analyzed rates to help you find the cheapest car insurance for 16-year-olds.

How Much Is Car Insurance for a 16-Year-Old?

It costs $2,735 a year to add a 16-year-old to a parent’s car insurance policy, on average, according to Forbes Advisor’s analysis. That’s about $230 extra per month.

But compare it to the average car insurance cost for a 16-year-old driver with their own policy: $8,765 per year—a whopping $730 a month.

And don’t forget to look at the total overall insurance cost for the whole family: The average price of a parent’s car insurance policy with a 16-year-old driver included is $5,697 per year, based on the companies we analyzed. The best car insurance will be a policy that has a decent total cost and robust coverage.

It’s super expensive to insure 16-year-old drivers because newly licensed drivers lack experience. Drivers age 16 are more likely to be in accidents and file insurance claims, so they’re charged higher prices for their car insurance. As teen driver gains experience, their car insurance cost will start to decrease as long as they don’t get into any accidents or get cited for traffic violations.

What Is the Cheapest Car Insurance for 16-Year-Old Drivers?

Erie is the cheapest car insurance company for adding a 16-year-old driver to a parent’s car insurance policy, among the companies evaluated.

Adding a 16-year-old to a parent’s policy is generally much cheaper than putting the teen on a policy of their own. Here is how car insurance costs compare for a 16-year-old driver.

Cheapest car insurance for adding a 16-year-old driver

If you’re adding a 16-year-old to an existing policy, Erie is $932 cheaper than the national average ($2,735). Nationwide is the second cheapest company.

Cheapest car insurance companies for 16-year-olds

Cheapest car insurance for parents plus a 16-year-old driver

If you’re looking for a new policy for both parents and a 16-year-old, Erie has the cheapest car insurance, based on the large insurers in our analysis. USAA is the second cheapest, and Geico is the third cheapest.

Cheapest car insurance companies for parent policy with driver age 16

Cheap car insurance for 16-year-olds on their own policy

It’s much more expensive for a 16-year-old to buy their own car insurance policy than to be added to a parent’s policy. The average yearly car insurance cost for a 16-year-old with their own policy is $8,765. That’s about $3,000 more than the cost of a parent policy ($5,697) with a driver age 16 added.

Auto-Owners has the cheapest car insurance for 16-year-old drivers with their own separate policy, compared to competitors we evaluated. That’s about $3,380 cheaper than the national average ($8,765). Geico has the second lowest car insurance cost for 16-year-old drivers: $2,875 cheaper than the national average.

Cheapest car insurance companies for 16-year-olds on their own policy

What Factors Influence the Cost of Car Insurance for 16-Year-Old Drivers?

Age is a determining factor in car insurance rates, but it isn’t the only one. Here are various factors that will influence the cost of car insurance for 16-year-old drivers.

Age

Adding a teen to a parent’s auto insurance policy increases your rate because insurance companies view inexperienced drivers as a high risk. You won’t be able to avoid a hefty increase, but you can take steps to minimize the financial impact.

Gender

Car insurance companies make rate decisions based on claims they’ve paid. Because teenage males are the source of more claims than female teens, insurance for them will cost more. Of course, if you make a claim, you’ll also likely get a rate hike at your next renewal time.

Location

Location-related factors that often affect car insurance costs include:

• Weather and disaster claims such as hail and floods.
• The frequency of auto accidents.
• The frequency of claims related to auto theft and vandalism.
• The cost of vehicle repairs, including parts and labor.
• The cost of medical care, which affects how much insurers must pay for injury claims.

Type of car

If you buy collision and comprehensive insurance, your auto insurance will have to pay for claims related to car theft, damage to your vehicle from crashes, backing into poles, trees falling on your car and more. If your car is more expensive to repair or replace than other vehicles, the extra cost will be reflected in your rates for collision and comprehensive coverage.

What Discounts Are Available for 16-Year-Olds?

You may not find a ton of car insurance discounts for 16-year-olds because they have a strong track record as risky drivers who cause insurance claims. But it’s worthwhile to see what your teen may be eligible for.

Good student discount

A “good student discount” is a no-brainer if your 16-year-old driver qualifies. But you may have to ask for it, or your car insurance company won’t know to add it.

Forbes Advisor’s analysis of good student discounts found an average of 4% savings.

The eligibility rules for this discount can vary a little by company, but generally, the student needs to be within a certain age range, going to high school or college full-time and receiving good grades.

Typically “good student” can mean any of these:

• In the upper 20% of their class.
• Grade average of B or better.
• Average of 3.0 or better.
• On the Dean’s List, Honor Roll or comparable listing.
• In the upper 20% of a national standardized test within the past 12 months, such as the PSAT.

Discount for a driver training class

This discount may be less common but worthwhile if your insurance company offers it. If your 16-year-old completes an approved driver training program, you could earn a training discount. Make sure the course you’re looking at is approved for the discount before you count on it for a price break.

Can a 16-Year-Old Get Their Own Insurance Policy?

A 16-year-old can get their own insurance policy if they have a vehicle registered in their name. But you’ll likely find this to be prohibitively expensive. You can usually save money by putting a 16-year-old driver on a parent’s auto insurance policy.

How to Get the Cheapest Insurance Policy at 16

Here are some tips for getting the cheapest car insurance for a 16-year-old.

Get multiple quotes

Once you add a 16-year-old to your car insurance policy, the company that was cheap for parents before may no longer have competitive rates. Adding a new driver is a good time to compare car insurance quotes to see where the better deals are.

Explore discount opportunities

Focus on good student discounts and price breaks for completing a driver’s education class. But also ask your car insurance agent what other discounts might apply for families with a 16-year-old driver.

Drive an affordable car

Collision and comprehensive insurance will cost less if your vehicle is cheaper to repair or replace. You want a solid, safe vehicle for your teen driver, but avoid luxury cars, and definitely avoid a sports car if you want to keep insurance rates in check.

Increase your deductibles

If you buy collision and comprehensive insurance, you’ll choose a deductible. You can usually save money by having a higher deductible—such as $1,000 instead of $500.

Ask your car insurance agent to give you quotes for various levels of higher deductibles. Then decide if the savings is worth it, keeping in mind that a 16-year-old driver is more likely than an adult to crash into something.

Coverage amount

You may be toying with the idea of reducing coverage to save money. But if you have a 16-year-old driver, this is no time to skimp on auto insurance coverage. Teens are more likely to be involved in car accidents, so your chances of needing good insurance due to claims are higher.

Average Car Insurance Cost by State for 16-Year-Olds

Below, you’ll see how the cost for adding a driver age 16 to a parent policy compares to the cost of a separate car insurance policy, broken down by state.

Average cost by state for adding driver age 16 to parent policy vs. own policy

Average Car Insurance Cost by Gender for 16-Year-Olds

Insuring a 16-year-old male driver costs 25% more than insuring a female of the same age when added to a parent policy. Male teens are more expensive to insure than their female counterparts because teen males have a higher rate of car accidents, which leads to filing more car insurance claims. The more risk you pose, the more you pay.

Average car insurance cost by gender for drivers age 16 on parent policy

Male drivers pay more than females when buying their own policy at age 16.

Average car insurance cost by gender for 16-year-olds on their own policy

Methodology

We used data from Quadrant Information Services, a provider of insurance data and analytics. Rates are based on a parents and a 16-year-old driver with clean records insuring a Toyota RAV4. Policy limits are  $100,000 in bodily injury liability coverage per person, $300,000 per accident and $100,000 in property damage liability (known as 100/300/100), uninsured motorist coverage, and collision and comprehensive with a $500 deductible.

Cheap Car Insurance for 16-Year-Olds FAQ